Is the global financial system stable?

The report was received with mixed reviews

Shadow banking

Have the toxic forms of shadow banking been eliminated or have they migrated to the non-banking sector?
How healthy is the global financial system?
By: Mohamed A. El-Erian – Allianz

Central counterparty

Amini and al find that CCP doesn’t always reduce systemic risk. They propose a new CCP guarantee fund which is superior to the default fund used in practice since as it gives banks incentives to join the CCP and leads to smaller liquidation losses.
Systemic Risk and Central Clearing Counterparty Design
Authors: Hamed Amini, Damir Filipović, Andreea Minca
From: University of Miami – EPFL and Swiss Finance Institute – Cornell University

Bank capital

“Higher capital ratios are unlikely to prevent the next financial crisis”, argue Jordà and al., but contribute to macro-stability by shortening the duration of recessions caused by financial crisis.
Bank Capital Redux: Solvency, Liquidity, and Crisis
Authors: Oscar Jordà, Bjorn Richter, Moritz Schularick, Alan Taylor
From: San Francisco Fed – University of Bonn – UC Davis

Tony Gandy is revewing the Jordà and al. paper.
Challenging the Role of Capital Adequacy using Historical Data
By:Tony Gandy – London Institute of Banking and Finance

…and the funnies!

Pollyanna
By: John Cochrane – Stanford University